Three Arrows Capital Buys Ethereum Dip Despite Gas Fee Criticism

UTC by Benjamin Godfrey · 3 min read
Three Arrows Capital Buys Ethereum Dip Despite Gas Fee Criticism
Photo: Depositphotos

Zhu led 3AC to invest in Ethereum at a time that seemed to be correlated with the timing the digital currency traded at its lowest point in the past month.

Digital currency hedge fund, Three Arrows Capital (3AC) has scooped up 156,400 Ethereum (ETH), worth approximately $676.37 million, in a dramatic turn after the firm’s Chief Executive Officer, Su Zhu slammed the world’s most used blockchain network for its high gas fees a few weeks back. The purchases were identified by blockchain analytics firm Nansen who noted the transfers were deposited into a wallet associated with 3AC.

Su Zhu took to Twitter back in November to complain about the usability of the Ethereum blockchain, which he noted has been marred by high gas fees.

“Yes, I have abandoned Ethereum despite supporting it in the past. Yes, Ethereum has abandoned its users despite supporting them in the past. The idea of sitting around jerking off watching the burn and concocting purity tests, while zero newcomers can afford the chain, is gross,” he tweeted, adding that “Ethereum culture suffers massively from the Founders Dilemma. Everyone is already far too rich to remember what they originally set out to do. Perhaps a bear market is needed to remind them, or perhaps we must build elsewhere, but this is what it is – nothing new under the sun.”

Zhu went on to say that the validity of his complaints was reflected in the engagements his tweets received, saying Ethereum developers promised users a good future, but made it such that users had to pay about $100 to $1000 to enjoy it.

Despite these damning complaints, Zhu led 3AC to invest in Ethereum at a time that seemed to be correlated with the timing the digital currency traded at its lowest point in the past month. Zhu responded to a tweet from Chinese blogger, Wu Blockchain, noting;

“Look I couldn’t let you guys jerk off watching the burn without me. Eth L1 still unusable for newcomers, show it to your grandma if you don’t believe me.. I’ll still bid it hard on any panic dump like this weekend obv..100k eth is dust fwiw, more coming”

Three Arrows Capital Ethereum Buyup: a Campaign for Avalanche?

Su Zhu is a known investor and supporter of a rival blockchain protocol, Avalanche (AVAX), and there are people in the community who consider Zhu’s Ethereum slamming as a way to campaign for AVAX. While there was no direct reference to Avalanche in his tweets, those who understand how both protocols work will understand that the Ethereum shaming is a big boost for low cost and fast Avalanche.

As reported by Cointelegraph, at 23:34 UTC today, 93,791.894 Ether was moved from the wallet belonging to 3AC to an address that appears to belong to a major trader. A number of smaller amounts were also moved to other addresses, one of which is the 500 Ether moved to an apparent NFT investment wallet shortly.

Altcoin News, Business News, Cryptocurrency news, Ethereum News, Investors News
Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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